On June 24th 2025 the markets went mad in the India as the BSE Sensex gained 900+ points, the Nifty 50 breached 25,200. This sharp rally was due to the positive global cues, weaker US dollar and easing geopolitical concerns in the Middle East. The bullish sentiment was also supported by a resilient investor sentiment, after a surge in global equities and a fall in oil prices mitigated pressure on importers such as India. Abhaigamye said the fall in the U.S. dollar also contributed to the surge in FII inflows, which in turn also boosted the upside.
Key Drivers of the Rally
1.Global Market Optimism
A rally overnight on Wall Street and signs of diplomatic progress between Israel and Iran created a risk-on mood around the world, pushing markets higher in Asia and Europe.2. U.S. Dollar Softens
A softer U.S. dollar, that fell on speculation the Fed will pause rate hikes, provided better liquidity to global emerging markets, including India.3. Oil Prices Ease
Brent crude dropped below $80 a barrel, easing worries of inflation being imported and wider current account deficits for India.4.Firm Domestic Demand & Corporate Earnings
Some cheer also comes from early signs of a spunky set of Q1FY26 corporate results and all-time high domestic mutual fund SIP inflows.Sector & Stock Highlights
- Banking & Financials: ICICI Bank, Axis Bank, and HDFC twins marched ahead driven by improving net interest margins.
- IT & Tech: Infosys and TCS  bounced back as tech shares globally turned into investor favourites.
- Auto & FMCG: Maruti Suzuki and Hindustan Unilever surged on rural demand hopes.
Market Outlook
Analysts feel that the breakout of Nifty above 25,200 indicates strong technical trend for Sensex that could make an attempt towards 79,000 levels in the short term if global headwinds remain subdued.But the markets is give investors everything and more at a generous valuation, and it would be prudent to be cautious as March was shaken by the oil price volatility array and global rollercoaster could lead to profit-booking.Expert Tips
"This is a great time for investors to reassess their portfolios. Focus on financials, consumption plays, and infrastructure stocks for the medium term."
— Ravi Nair, Head of Research, XYZ Securities
Final Thoughts
The momentum in the Indian stock market is indicative of the perfect blend of global tailwinds and domestic strength. The rally, however is encouraging but smart investors must be cautious, book partial profits and keep diversified exposure to all sectors.